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Abstract
The future of the Ethiopian economy in the urban area depends to a great degree on the success of Micro and Small enterprises (MSEs) as in many other developing countries since MSEs are important to economic growth and considerably essential to generate employment. However, Ethiopian MSEs are facing a series impediments emanating from external and internal factors that have sign if i can’t adverse effects on their performance, growth and sustainability. The purposes of this research are to explicitly enquiry and consider aspects that are hampering the performance, growth and sustainability of MSEs in Wolaita and Dawro Zones. The study was utilized causal research design to achieve the research objectives. The target population under study is all enterprises in the five developmental sectors in five towns from both Wolita and Dawuro zone Administrations. The study was conducted between June 2016 March 2017. In this study, primary and secondary data types and sources were used. The instruments to collect primary data were questionnaires. Sample size was 347 which determined by using Yamane (1967) formula and individual informants were selected via stratified random sampling technique. The data collected was analyzed quantitatively and qualitatively by the aid of Spss. V.16. The finding of the study showed that the variables (financial, marketing, working premises, technological, political-legal, entrepreneurial and managerial factors affecting enturprenual growth and sustainability both in Wolaita and Dawuro zones which were explained the variance of 34% and 66% of the variance was explained by other factors which are not the part of this study variables.
Highlights
The micro and small enterprise sector recognized as an integral component of economic development throughout the world
The above table 2 gives the clue about the age of respondents from the 333 respondents, 76.74% were under age group of 35-50 years, 20.06% were under age group of 50-64 years and others constituted 3.2%
From the above table information, the researchers concluded that the strategy of micro enterprises (MSEs) in Ethiopia designed and targeted the youths and to reduce their unemployment problems
Summary
The micro and small enterprise sector recognized as an integral component of economic development throughout the world At this moment the importance and contribution of micro and small enterprises (here after MSEs) in stimulating development growth is almost acknowledged in those of developing countries of Asia, Latin America and Africa. MSEs have a crucial role because of their potential contributions to improvement of income distribution, employment creation, poverty reduction, industrial development, rural development, and export growth. This contended that the dynamic role of micro and small enterprises (MSEs) in developing countries as engines through which the growth objectives of developing countries can be achieved has long been recognized. Micro and small enterprises by virtue of their size, capital investment and their capacity to generate greater employment, have
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